Corporación Inmobiliaria Vesta (VESTA) Investor Day 2024 summary

Strategic vision and future growth

• Route 2030 targets 50% GLA growth to 63 million sq ft and aims to double both rental revenue and FFO by 2030, focusing on profitability and accelerated growth.

• Two main value creation avenues: extracting upside from the existing $3.7B portfolio (targeting $600M in added value) and investing $1.7B to develop 20–20.5 million sq ft of new space.

• Emphasis on maintaining 90%+ USD-denominated leases, long-term contracts, and disciplined tenant selection to ensure stable, inflation-protected cash flows.

• Growth plan prioritizes major markets (Monterrey, Guadalajara, Mexico City, Tijuana, Juarez, Queretaro) with tailored investment and land acquisition plans.

• Continued focus on total return, with targets of $0.30+ FFO/share and $5+ NAV/share by 2030.

Strategic achievements and growth (2018–2024)

• Portfolio GLA grew 1.4x, rental revenue 1.9x, and FFO 2.7x from 2018 to 2024e, with asset value doubling to $3.7B.

• NAV per share and FFO per share achieved CAGRs of 8.4% and 7.8%, surpassing Level 3 targets.

• Delivered a 16% IRR to investors, outperforming S&P 500, FIBRAS, REITs, and BMV IPC.

• Achieved or exceeded all Level 3 targets, including portfolio optimization and disciplined investment.

• Diversified portfolio by region and tenant industry, reducing exposure to key accounts and automotive sector.

Market outlook and business opportunities

• Industrial real estate demand in Mexico is driven by robust manufacturing exports, e-commerce, nearshoring, and US-Mexico trade.

• Projected $110B increase in exports and $30B growth in e-commerce sales by 2030, translating to 250 million sq ft of new demand over six years.

• E-commerce penetration expected to reach 15% by 2030, requiring 36 million sq ft of new logistics space.

• Rents have risen sharply in prime markets, with further increases expected, especially in regions like Bajío.

• Portfolio diversification across regions and industries (e-commerce/logistics now 40% of portfolio) reduces risk and positions for sectoral growth.